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Released August 24, 2021 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Sweden's largest refiner and fuel company, Preem AB (Stockholm, Sweden), added to its plan to convert its Lysekil oil refinery into Scandinavia's largest producer of renewable fuels by revealing plans for a hydrogen plant.
The goal is to build a 50-megawatt (MW) electrolysis plant to create fossil-free hydrogen for biofuels. The company said that producing hydrogen through fossil-free methods can reduce CO2 emissions by at least 80% compared to using fossil materials. At the end of last year, Industrial Info reported on the first phase of the Lysekil refinery transformation with the redevelopment of the existing Synsat plant, which today produces environmental Class 1 diesel. The redevelopment will boost Preem's renewable diesel production by 650,000-950,000 cubic meters annually. This is two to three times higher than today's renewable production capacity at its Gothenburg refinery. For additional information, see November 10, 2020, article - Preem Converting Sweden's Largest Refinery for Renewable Fuels. The company operates two refineries in Sweden, located at Lysekil and Gothenburg, with a refining capacity of more than 18 million cubic meters (m3) of crude oil every year. Lysekil is the country's largest refinery. Preem is responsible for 80% of Swedish refining capacity and 30% of Nordic capacity.
The project, which is still being evaluated, will move to the next stage in spring 2022. The size of the first plant is governed by the possibility of scaling up biofuel production as well as obtaining greater output from the electricity grid, which will have an impact on the schedule and costs. A number of factors determine when the new plant can be in place, such as how long the environmental assessment process will take. Preem's goal of producing about 5 million cubic metres of biofuels by 2030 can reduce transport emissions by up to 12.5 million tonnes of CO2, corresponding to about 20% of Sweden's total emissions. This transition in production will require large-scale supply of hydrogen, and an expansion of "one or more electrolysers can play a major role."
"Preem is in the middle of an ambitious transition journey. Fossil-free hydrogen is an interesting technology that lends potential to increased, sustainable production of biofuels," said Peter Abrahamsson, head of sustainable development at Preem.
Preem is working with energy company Vattenfall (Stockholm) to supply the proposed plant with renewable energy. "It is very promising that fossil-free electricity has the potential to replace fossil raw materials and thereby reduce emissions from Preem's hydrogen production, as biofuel production increases," added Andreas Regnell, Vattenfall's head of strategy. "To reach Sweden's climate targets, it is vital to partner up to find solutions for transitioning industry processes to lower CO2 emissions."
Last month, Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands) launched Europe's biggest hydrogen electrolysis plant of 10 MW--known as Refhyne--at the Wesseling site of its Rheinland refinery in Germany. It will produce green fuels as part of a European Union-funded consortium that is looking to expand the plant to 100 MW. Partners include electrolyser producer ITM Power, research organisation SINTEF and consultants Sphera and Element Energy. For additional information, see July 13, 2021, article - Shell Starts Europe's Largest Green Hydrogen Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The goal is to build a 50-megawatt (MW) electrolysis plant to create fossil-free hydrogen for biofuels. The company said that producing hydrogen through fossil-free methods can reduce CO2 emissions by at least 80% compared to using fossil materials. At the end of last year, Industrial Info reported on the first phase of the Lysekil refinery transformation with the redevelopment of the existing Synsat plant, which today produces environmental Class 1 diesel. The redevelopment will boost Preem's renewable diesel production by 650,000-950,000 cubic meters annually. This is two to three times higher than today's renewable production capacity at its Gothenburg refinery. For additional information, see November 10, 2020, article - Preem Converting Sweden's Largest Refinery for Renewable Fuels. The company operates two refineries in Sweden, located at Lysekil and Gothenburg, with a refining capacity of more than 18 million cubic meters (m3) of crude oil every year. Lysekil is the country's largest refinery. Preem is responsible for 80% of Swedish refining capacity and 30% of Nordic capacity.
The project, which is still being evaluated, will move to the next stage in spring 2022. The size of the first plant is governed by the possibility of scaling up biofuel production as well as obtaining greater output from the electricity grid, which will have an impact on the schedule and costs. A number of factors determine when the new plant can be in place, such as how long the environmental assessment process will take. Preem's goal of producing about 5 million cubic metres of biofuels by 2030 can reduce transport emissions by up to 12.5 million tonnes of CO2, corresponding to about 20% of Sweden's total emissions. This transition in production will require large-scale supply of hydrogen, and an expansion of "one or more electrolysers can play a major role."
"Preem is in the middle of an ambitious transition journey. Fossil-free hydrogen is an interesting technology that lends potential to increased, sustainable production of biofuels," said Peter Abrahamsson, head of sustainable development at Preem.
Preem is working with energy company Vattenfall (Stockholm) to supply the proposed plant with renewable energy. "It is very promising that fossil-free electricity has the potential to replace fossil raw materials and thereby reduce emissions from Preem's hydrogen production, as biofuel production increases," added Andreas Regnell, Vattenfall's head of strategy. "To reach Sweden's climate targets, it is vital to partner up to find solutions for transitioning industry processes to lower CO2 emissions."
Last month, Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands) launched Europe's biggest hydrogen electrolysis plant of 10 MW--known as Refhyne--at the Wesseling site of its Rheinland refinery in Germany. It will produce green fuels as part of a European Union-funded consortium that is looking to expand the plant to 100 MW. Partners include electrolyser producer ITM Power, research organisation SINTEF and consultants Sphera and Element Energy. For additional information, see July 13, 2021, article - Shell Starts Europe's Largest Green Hydrogen Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
